Pound jumps as UK eyes softer exit

Sterling jumped against the euro as investors seized on the prospect of the UK retaining preferential access to the EU’s single market after Brexit.

The currency reached its strongest level in almost two months against the dollar and climbed the most since early November against the euro, as Britain needs to keep open the possibility of continuing to pay fees to the EU even after it leaves, UK chancellor Philip Hammond said, after one of his colleagues said this could not be ruled out.

Brexit minister David Davis told lawmakers earlier that Britain would consider making payments to Brussels after it leaves to achieve the best possible access to the bloc’s markets for businesses.